Axios House: Racing faces "biggest regulation change in history," Red Bull team principal says

DAVOS, Switzerland — As Formula One grows into its newly minted status as an audience favorite and popular investment opportunity, regulatory changes behind the scenes are set to shake up the sport's next season, racing executives said at a Jan. 20 Axios House event.

Why it matters: Some industry stakeholders foresee a massive impact from the changes, which are expected to lead to speedier cars and renewed competition among the teams.

Axios co-founder Mike Allen spoke with Oracle Red Bull Racing CEO and team principal Laurent Mekies and Carlyle CEO Harvey Schwartz at the event, which was produced in partnership with The Race Media.

Context: Red Bull Racing and Carlyle announced a partnership in September of last year, under which Carlyle branding will appear on Oracle Red Bull Racing cars as well as other places. "There's 800+ million fans of F1, and the trajectory of growth is extraordinary," Schwartz said.

• The partnership between the two felt quite natural, Schwartz said. When considering what type of business partnership to pursue, the people had to feel right.
• "It was immediate – the connection in terms of 'Hey, we can do more than just be economic partners. We can be real partners.'"

What they're saying: "The sport is about to enter the biggest regulation change in history," Mekies said.

• "[W]e are going to change both the engine and the chassis regulation at the same time."
• The pecking order among Formula One's ten teams may change as they are thrown "into the complete unknown" with these changes, he added.

What we're watching: "Expect the unexpected," Mekies said when asked how Formula One will be different this season. Some outsiders may suddenly be "leading the field."